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HomeMy WebLinkAbout11/20/96 COUNCIL APPROVED DEC 4 1995 TAPE #1422 UNAPPROVED DRAFT CITY COUNCIL MEETING MINUTES NOVEMBER 20, 1996 #0025 #0045 The regular meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, 239 4th Street, Bremerton, Washington, Wednesday, November 20, 1996, at 5:30 P.M., with Council President John Law presiding. Council members present were Carlos Montgomery, Sherril Huff-Menees, David Farr, Richard Neville, Lon Overson, Cecil McConnell, and A1 Colvin. Councilman Bob Winters was absent. Also present were City Attorney Ian Sievers and City Clerk Kathleen McCluskey. The meeting opened with the Pledge of Allegiance led by Council President Law and Invocation given by Reverend Sam Rachal, Jr. of Mt. Zion Missionary Baptist Church. President Law made the following announcement: (1) Council will hold a Study Session immediately following the Council meeting to discuss "Re-evaluation of SR304 access from the Charleston District to Downtown. CONSENT AGENDA A. Minutes of Meeting - November 6, 1996 #AB96-262 M/S/C/U(Neville/Montgomery) to approve Consent Agenda as presented. CLAIMS/CHECK REGISTERS Vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those expense reimbursement claims certified as required by RCW 42.24.090, have been recorded on a listing that had been made available to the Council. M/S/C/U(Colvin/Overson) on November 20, 1996, the Council does approve for payment those vouchers included and further described as follows: 203584 -203751 in the amount of $368,223.13; and Regular Payroll for the period ending 11/15/96, in the amount of $697,859.69. COUNCIL MEMBER REPORT8 Mr. Montgomery complimented the City's Street Department crews for doing a fantastic job during the snow storm. Mr. Farr welcomed a new restaurant in Bremerton - Greenhouse Restaurant located on Campbell Drive. He is enjoying a visit from his daughter, his grandson and their aunt. TAPE #1422 City Council Reg. Mtg. Minutes November 20, 1996 Page 2 of 13 Mr. Colvin echoed comments about the excellent response by the City's crews in keeping the streets passable and safer for the citizens of Bremerton. He reminded everyone of the District #1 Neighborhood meeting on November 21. Information regarding Tax Exemption Programs for senior citizens will be available at that meeting. He also complimented the Cable Access TV crew for a job well done. It was his hope that some organization would take on the task of decorating empty windows in the downtown area for the holiday season, and offered his assistance in that endeavor. Mr. Law reported the District #3 Neighborhood meeting was canceled due to snow and issues and concerns will be addressed at the December 17th meeting. MAYOR'S REPORT Mayor LYnn Norton read a news release she received just prior to the Council meeting: "The Washington State Ferries Director and CEO Paul Greene today announced Dakota Creek Industries Inc., of Anacortes is the apparent successful proposer to build two state of the art passenger only vessels for the ferry fleet." Mayor Horton noted the proposed boats would be built with the capability of creating a lessor wake at a speed of 30-34 knots through Rich Passage than the current passenger only vessels at 11-12 knots. And, the speed of the boats would allow 30-minute crossings (45- minute turn around time) between Bremerton and Seattle. This is important news to Bremerton since the first boat is slated for the Bremerton/Seattle route. The cost of the two boats is $19.4 million dollars. PUBLIC RECOGNITION Wayne Olsen, Bremerton resident, encouraged attendance at the District #1 Neighborhood meeting on November 21, 7:00 P.M., at the Sheridan Park Recreation Center. The guests speakers at that meeting will be Mayor Lynn Horton and representatives of the Sinclair Landing Association. Carol Atkinson, Bremerton Main Street Association, announced Santa will arrive downtown on December 6th, which will include a Christmas Tree lighting ceremony, photographs with Santa will be available with a donation to The Sun Bell Ringer Fund, and music will be provided by the Bremerton High School Choir. This event is sponsored by Bremerton Main Street Association, The Sun, and Americorp. On December 7 the Swing City Committee and North Pole Connection are sponsoring a Puppet Show by the Evergreen Children's Theater, at 123 Pacific at 2:30 P.M., Caroler's will perform at 2nd and Pacific, and at 3:00 P.M., the Bremerton High School Knights Marching Band and Drill Team will perform. She noted the "Welcome To Bremerton" was removed from the mural at 2nd an Washington because it was not what was originally planned and will be replaced TAPE #1422 City Council Reg. Mtg. Minutes November 20, 1996 Page 3 of 13 as soon as the weather permits. Kal Leichman, Bremerton resident, stated he attended a meeting on "parking on planting strips" at Lutheran Memorial Church where he asked a City official the dollar amount for the liability for people injuring themselves on planting strips. At that time, the City official did not have an answer. Now, he is asking the question what is the liability for the past five years for injury due to planting strips. He wants to make the point that if the liability is great he would support stopping vehicles from parking on planting strips. If the liability is little or nearly nothing, then he believes the City should stop any proposed action not allowing parking on planting strips. Wayne Olsen, Chairman of the Bremerton Planning Commission, apologized to anyone who attempted to attend their November 19th meeting, which was canceled due to road conditions. That meeting has been rescheduled for December 3, 6:00 P.M., in the City Council Chambers. 7A - ORDINANCE NO. 4576 (SECOND READING) REDUCING THE B&O TAX ON GARBAGE AND REFUSE BUSINESS, #AB96-258 Charlie Brown, Bremerton resident, stated it appears the proposal would decrease the tax by 1% to 17%. His understanding under State law is the tax is limited to .2 of 1%; however, he asked if the City Attorney or Mayor could provide a clearer explanation. He believes the Mayor and City Council take a Oath Of Office to uphold the laws of the State of Washington. If there is an interpretation of the law on this issue, it should be in favor of the taxpayers, not City government. Ian Sievers, City Attorney, stated the Association of Washington Cities conducted a survey in 1995 and he recalled that 90% of the cities are paying at between 5-10%. There are some other larger jurisdictions that are also up in the neighborhood of 15-17%. It may be seen as a matter of interpretation, but the City believes the level of taxation in Bremerton for the garbage utility is legal. Mr. Overson stated he personally believes collection of that tax is in the best interest of the citizens of the City. City services cost money and this money has to come in to provide services. He referenced a news article in The Sun stating Brem-Air is moving out of the City and asked if this changed the City's tax situation? The implication was that by their moving out the City would potentially lose some income. Mayor Lynn Horton stated with Brem- Air leaving the City will lose some income from their corporate enterprise beyond City limits, but they will still be a business in the City of Bremerton and all appropriate taxes will be collected. #0612 #0857 TAPE #1422 City Council Reg. Mtg. Minutes November 20, 1996 Page 4 of 13 Mr. Overson asked if the loss of income would result in a reduction of employees? Mayor Hotton stated no. Mr. McConnell stated according to some figures he received from the Treasurer's Office in 1994-1995-1996, each year the tax was reduced by 1%, the City generated more income than the prior year based on that tax. At the prior Council meeting, the City Treasurer stated the City would lose $43,000 for each 1%. He disagreed with Mr. Sievers's explanation; however, he would support the motion because a 1% reduction was better than none. Mayor Hotton stated if you look at an isolated year that is correct, the income coming in exceeds the money the City would lose by ramping down the 1% tax, but what you have to realize is the City has been ramping down the tax each consecutive year and it is cumulative, i.e. 4.5% times the $43,000. In answer to Mr. McConnell's question it appears people are using more garbage service. She noted for the most part the rates have been frozen in the City of Bremerton. Rich Hanna, City Treasurer, stated as Mayor Horton indicated, this is the third year the rate has been ramped down. The revenue from this tax to the City has continued to trend upward even though the rate has been reduced. The garbage business is obviously expanding in the City at a rate greater than the rate of reduction in taxes. The point that he made last week was if all things were held equal, the dollar affect of the 1% reduction of the tax rate was approximately $43,000. Had the rate been left at 18% that line item in the 1997 budget would be approximately that much larger than as presented. Mayor Hotton pointed out the City made a commitment to ramp that tax down each year until a reasonable rate is reached. She emphasized the tax base in Bremerton is somewhat limited due to the fact the City does not receive any tax revenue from the federal installation located in Bremerton. M/S/C/U(Huff-Menees/Montgomery) to pass Ordinance No. 4576 on second reading, reducing the B&O Tax on the garbage and refuse businesses, and amending Chapter 5.02 of the Bremerton Municipal Code. 7B - ORDINANCE NO. 4577 (SECOND READING) AUTHORIZING THE CONDEMNATION OF PROPERTY FOR THE EXPANSION OF EVERGREEN PARK, #AB96-259 Public comment - none. M/S/C/U(Farr/Neville) to pass Ordinance No. 4577 on second reading, authorizing the purchase of properties through condemnation for the purpose of expanding Evergreen Park. 8C - BUDGET HEARING FOR FISCAL YEAR 1997, #AB96-266 Pursuant to State statute, the City is required to have on public TAPE #1422 City Council Reg. Mtg. Minutes November 20, 1996 Page 5 of 13 hearing regarding the proposed 1997 budget. Mayor Hotton stated the proposed 1997 looks very similar to the 1996 budget with the primary difference being the cost of living increases for personnel, supplies and services. Some minor changes are being recommended to allow the Administration to function more efficiently internally, but for the most part she is not looking to bring on new additional staffing in the General Fund; however there is a new staffing level primarily in the Police Department Community Resources Division. In terms of public works and projects, the City received a grant to renovate the existing Evergreen park in 1997 and she hoped to acquire and renovate the old Hadden School site. There are several projects in the Wastewater and Water Utility, with the primary one in Wastewater being the Callow Avenue Basin Phase 2. In regard to the Hotel/Motel Tax, she emphasized those funds are to directly provide revenues to encourage tourism. In the case of Bremerton Main Street, their mission is not to attract tourism, but to work on downtown issues. However, the reason why they are funded at all is their sponsorship of the Blackberry Festival. The Chamber Of Commerce may fall into the same situation, but 2-3 years ago when the Visitor and Convention Bureau (VCB) got out of the visitor information side of the VCB the Chamber of Commerce stepped in and has directed and staffed a Visitor Information booth on the waterfront; therefore, they are involved in the visitor information process. The Naval Museum has been funded for many years and in reality the museum is basically the City's Naval Museum in that the Navy loans the City the artifacts and in turn contracts out the running of the museum. She supports funding the museum; however a question has been raised about funding the museum, which needs to be addressed at some point. She assumes that question involves both the Naval Museum and Kitsap Historical Museum, although there are some issues that will be brought to the State Legislature to get changed in 1997. She recommended funding the Admiral Theater because the building belongs to the City. If the Admiral Theater cannot not repay its loan, the City has made an agreement with HUD that the building will default to them. She did not believe it was in the best interest of the City to have a City owned building default to HUD; therefore, it was important to fund that activity as well as to talk about the affect it can have to revitalize the downtown, such as has been done in the City of Olympia. In reference to her funding recommendation for an RV Park feasibility study, many people, including the Executive Board of the VCB, have commented that we don't have any RV facilities in this area. Lots of people come into the community with recreational vehicles, especially now that we have Pendergast Regional Sport Complex; however, they are unable to find appropriate over night accommodations. She did not see this as conflicting with hotel TAPE #1422 City Council Reg. Mtg. Minutes November 20, 1996 Page 6 of 13 revenues because it is an entirely different market. The one issue that may be a bit controversial is the lack of funding for the VCB. As she explained to Council at the time she submitted her preliminary budget, she had not met with the Director of the VCB and there were some long outstanding issues that needed to be addressed. She did meet with the VCB Board earlier in the summer, but felt those outstanding issues needed to be brought to the new director. She did eventually have a positive meeting with the new director where those issues were discussed. She pointed out the Hotel/Motel Tax area is one that council has never passed without changing. She was quite confident that would be the case during this budget process. She noted there are funds in reserve if Council chooses to fund the VCB or to do something else. Mayor Horton described how Dan Miller, Project Manager for the City, will work with Kitsap Transit on construction of the new Transportation Plaza. Mr. Miller is presently working with Kitsap Transit because the City needs to make sure whatever is done on the Ferry Terminal site coordinates with whatever is done in the rest of the downtown. If the City is involved with a parking structure, she wants to make sure the city has management oversight over that project. George Bieda, representing the Bremerton Naval Museum, gave background information on the formation of the Naval Museum and the role it plays today in serving both the military/retired military and tourists. He also expressed their appreciation of the funding proposed for 1997. Grant Griffin, Executive Director of the Visitor and Convention Bureau (VCB) expressed his devastation when he learned that the VCB was not recommended for funding. He re-emphasized the fact that the Hotel/Motel Tax is specifically for tourism and the VCB's single and primary mission is tourism. This tax is support by members of their organization, who feel strongly that they would like to see VCB put the effort forward to continue operating. He heard that there were several reasons why the VCB might not be funded, one being they basically did the same job as the Bremerton Area Chamber of Commerce, which is not true in that the Chamber is more "business" oriented. The VCB books conventions and tour groups and operates a County-wide Visitor and Information Center where they see thousands of people on a monthly basis. He emphasized those activities are not done, with the exception on a local basis, by the Chamber. The VCB is the only full time agency devoted strictly to tourism in Kitsap County and when they get inquiries that are germane to the City of Bremerton that is shared with the Chamber of Commerce. As Mayor Horton mentioned, he met with her several weeks ago to discuss past experiences that are being carried forward to this day. He pledged to Mayor Horton that TAPE #1422 City Council Reg. Mtg. Minutes November 20, 1996 Page 7 of 13 the VCB's support would be there for Bremerton and yes, some mistakes were probably made in the past, but he wanted to put the past behind and move forward, which cannot be done without funding. He found it odd that Bremerton would choose not to fund the VCB when all other municipalities and Kitsap County are funding them at the level of 50% of the Hotel/Motel Tax. Renee Kehl, Super 8 Motel, stated support for the VCB and Bremerton Area Chamber of Commerce receiving Hotel/Motel Tax funding. Rowena Jongeward, Mid-Way Inn, stated she has seen their tourist business drop. Three or four years ago there were larger numbers of people coming to this area from out-of-town. She agreed the Naval Museum is great; however, she felt strongly that they could charge a $1.00 admittance, which would help pay their own way. she did not feel the Hotel/Motel Tax revenue being given to either the Chamber of Commerce or VCB was sufficient to do the job and to do it well. She referenced Yakima and the fact that they have a VCB and Convention Center, which became a reality because their Hotel/Motel Tax went to promote the interests of Yakima County, not just the City of Yakima. As a smaller scale hotel business, they do not have the money to advertise in nationally distributed brochures or magazines. However, her tax dollars combined with others tax dollars given to the VCB and Chamber of Commerce can be pooled and do the kind of advertising they need to promote their businesses. She cannot afford to give her employees a wage increase or maintain the property in the manner they would like to, if they do not get people into their establishment. Not funding the VCB is being short sighted and a disservice to this community. Ric Raybourn, President of the Kitsap Lodging Association, emphasized the VCB is vital to the lodging facilities in Bremerton. With the exception of one hotel in Bremerton, these facilities do not have on-site sales staff, which means the VCB serves as their sales staff, i.e. providing referrals, convention leads, educational opportunities dealing with public relations, press releases, and marketing. Without a properly funded VCB these facilities will face an uphill battle trying to diversify and move away from their dependence on the military. He asked Council to consider the legal and appropriate use of these dollars. The lodging facilities that collect those taxes should be given a great deal of consideration in their decision to distribute the Hotel/Motel Tax funds. At this time, 48% of the Counties 1,169 guest rooms are in the City of Bremerton. He urged the City to allot a commensurate amount of Hotel/Motel Tax dollars the City receives to over-night tourism, which will expand the base from which those dollars are generated. As the General Manager of the Silverdale Hotel, he is in the business of exceeding their customers' expectations every day and when that doesn't happen he TAPE #1422 City Council Reg. Mtg. Minutes November 20, 1996 Page 8 of 13 is in the business of going back and exceeding their expectation and how those problems are dealt with. As the incoming President of the VCB, he guaranteed that whatever problems existed in the past would not continue to come between the City and the VCB to promote tourism. Council's funding decision will greatly impact the future of the lodging industry in the City of Bremerton and he urged Council to listen to the concerns brought forward by those who run the lodging businesses. He also urged Council to send a message to not only the existing facilities that are currently doing business in the City, but to proposed facilities, such as in the Sinclair Landing project, that the City Council and the Mayor truly support over night tourism in the City and that they will show their support for new hotels coming into the area by supporting the agency that will be charged with bringing people into to the area to fill those lodging facilities. Yong Kang, owner of Oysterbay Inn & Restaurant, stated he believes Bremerton is a beautiful destination and lots of people can be attracted to it, but there needs to be a concentrated effort to promote the area. Government funding is being cut back and the loss of revenue needs to be replaced through the promotion of tourism to bring more people into our area. Louis Soriano, representing Bremerton Main Street, stated it was not Main Street's intent to have lots of people speaking on their behalf at this time, but he asked those in attendance to stand up and be recognized. He wanted to make sure Council was aware of who serves as the Director as well as the Board members: Director - Carol Atkinson; President - Lawrence Soriano; Vice President - Bob Tulp; Secretary - Cheryl McCullough; Treasurer- Ann Laubach, Dave Boynton, Ray Clarke, Pam Martin, Rich McDonald, Emily Moshay, Susan Peterson, Rex-Zane Rudee and Brad Smith. Mr. Soriano pointed out Main Street has over 200 volunteers. He provided background information on the formation of Main Street and the hope that some day they will become part of the Federal Main Street Association. He emphasized Main Street's involvement, some of which include: participating in the Downtown/Waterfront Task Force, Santa's Arrival, St. Patrick's Day Parade, Concerts on the Boardwalk and the Blackberry Festival. He introduced Richard Brandenberg, Executive Director of the Port of Bremerton. Richard Brandenberg stated he is in his fourth month as Executive Director of the Port of Bremerton and arrived in time to experience the Blackberry Festival, where he watched 10's of thousands of people pack the boardwalk for that activity. The Port Marina was filled to capacity during that event and people were making docking reservations a year in advance so they could enjoy next year's festival. The Concerts on the Boardwalk have been extremely successful and the Port of Bremerton is very supportive of the efforts of Main Street. Seattle would not be the same without a TAPE #1422 City Council Reg. Mtg. Minutes November 20, 1996 Page 9 of 13 strong downtown organization representing other than the government or just citizens. He views Main Street as extremely effective and the work that goes on should be highly appreciated and recognized not only in the City's activities support but also financial support. Mr. Sofiario noted the Kiwanis Club was represented in the audience in support of Main Street and their involvement is through the Blackberry Festival. Main Street requested $20,000 for support of the Main Street Office and one paid employee. He emphasized the importance of volunteers to their organization. In past years the city had funded Main Street as follows: 1994 - $25,000; 1995 - $20,000, 1996 - $5,000. He pointed out Main Street requested $20,000, but the proposed 1997 budget shows an allocation of $5,000. Main Street agrees that all of the organizations recommended for funding are worthwhile, but it is interesting that Main Street does bring in 60,000 people into the Central business District. In 1996 the City Treasurer anticipated having a $46,000 carry over, but actually had $58,000. That $58,000 has been transferred into Fund 104 of the proposed 1997 budget. The City Treasurer anticipates a $28,000 carry over in Fund 104 in 1997. Main Street would not be requesting $20,000 unless it was warranted to do so, but their very existence is at stake due to loss of members as more downtown businesses close their doors. 7C - ORDINANCE (FIRST READING) SETTING WATER AND WASTEWATERRATES, #AB96-263 The proposed ordinance will increase the City's retail water and wastewater rates by an average of three percent (3%) effective January 1, 1997. Staff analysis has demonstrated that this increase is necessary to allow the utility to pay for current operations, and to implement the capital improvements which are mandated to meet environmental and water quality regulations. Rich Hanna, City Treasurer, stated much of this information had been presented to the City Council earlier in the year. And, he emphasized the 3% increase would be on the fixed portion of the bill and the reason for proposing it in that fashion was based on the fact it will provide a more stable, predictable revenue stream for the Utility. Russ Nickerson stated he recently learned the City offered a variable rate for senior citizens and was concerned that information was not publicly published. He was very interested to know the "senior" rate and who sets them? Mr. Hanna stated the utility does not have a "senior rate"; however, there is a below cost of service rate provided for low income disabled and low income seniors. Anyone wishing information on the availability of such a rate can contact his office or the Utility Customer Service TAPE #1422 City Council Reg. Mtg. Minutes November 20, 1996 Page 10 of 13 Department. He pointed out the City provides information on this reduced rate through the publishing of the adopted ordinance and through the Utility billing process. Mr. McConnell pointed out the recent newspaper article about the proposed rate increase left out the words "low income" in front of the words "senior citizen". Kathleen McCluskey, City Clerk, read into the record a letter received from Bremerton resident Laurains E. Skoka: "We the people who wished to a attend the public hearing on rate increases protest the proposed water/sewer rate increases. As a single person, not quite a senior, not disabled, but reaching those descriptions sooner than later. Living in a community of many low income, senior citizens and young families, which non can afford these rate increases. I work five days a week from 7:00 AM to 4:20 PM. I conserve water/sewer. I reuse my washing machine water, I run my dishwasher once a week. Yet my water sewer bill is higher than my heating bill. I can put water restrictors on faucets, limit toilet tank waters, but I still get no credit for these items. Rates continue to rise not just for me, but for all citizens of Bremerton. Bremerton looks like a dying city and you put rate increases on the people who are the hardest pressed to meet these rates. My salary is not increased, but my living increases are. I no longer get raises and I am approaching retirement with yet a smaller income. I am not in favor of rate increases." 0 PM Mr. Neville asked Mr. Hanna to explain the income cut off point to qualify for the low-income senior rate. Mr. Hanna explained it is the same threshold to qualify for the reduction in property taxes. Inquiries regard the reduced rate can be made to the Customer Service staff - 478-5316. Mr. Neville stated he was happy to see the rate increase was no longer on the volume flow, but rather on the fixed rate, which makes it more equitable for everyone. Mr. Colvin asked if the City had a brochure outlining reduced rate program? Mr. Hanna stated yes, and is available through the Utility Customer Service Department. Mr. Farr stated no one is happy about a rate increase, but he firmly believes an increase of 3% and a steady small increase is more fair and less of a shock to people than having no increase for several years and then by necessity facing a 15-20% increase. Switching more emphasis of the cost of billing to the fixed rate verses the volumetric charges has been something he has been in favor for a long. He tired to gather support to go to basically or nearly all at a fixed rate. Mr. Hanna explained the benefits to the Utility of being in a more stable position and able to predict TAPE #1422 City Council Reg. Mtg. Minutes November 20, 1996 Page 11 of 13 income, but the benefits there are just like that for the consumer in that it takes the spikes out of the billing. He questioned for clarification if the overall billing is a 3% increase? Mr. Hanna stated yes. As he mentioned in his opening comments, in the case of water currently only 23% of revenue comes from the fixed portion. To do a 3% increase in our total water rate revenue, we're actually increasing the fixed portion of the bill by 13%. To quantify that in terms of dollars for a City resident that would amount to 27 cents per month and for a County resident it would be 39% per month of rate increase. Mr. Farr noted the City receives a lot of bad press over water and sewer bills, and asked if there were figures available as to what other surrounding communities are charging for their sewer and water services? Mr. Hanna stated he could not quote what other water/sewer districts or cities are charging in terms of dollars, but relative to other major utility purveyors in the County Bremerton has the lowest water rates (excepting a very small district within the County). At the same moment, the City's rates on sewer are the highest in the County. He anticipates other wastewater purveyors within the county will be catching up with City rates. Mr. Colvin asked if he understood correctly that the City's wastewater rate is tied to water usage? Mr. Hanna stated yes, as mentioned the water and sewer bills are composed of a heavy fixed portion and a portion-based on water consumption. Both the water and sewer bills volume is measured through the water meter. Mr. Colvin stated he too favors smaller incremental increases. He asked for an example of the average water/sewer bill? Mr. Hanna explained an average water bill for a single family residence in the City would be $10.00 per month and an average sewer bill would be about $35.00 per month. Mr. Colvinquestioned the average fixed portion? Mr. Hanna stated that varies, i.e., for a single family residence the fixed portion of a water bill is presently $1.98 per month and that would increase by 27 cents ($2.25 per month). Obviously, larger establishments would have a proportionally higher bill. Mr. McConnell asked if the surcharge attached to the water bill is based on the volume of the water or the dollar amount of the bill? Mr. Hanna explained the sewer bill is composed of two components - a fixed portion on a single family residence bill is presently $4.49 per month, which would increase to $5.30. Then, there is a volumetric portion and there is no proposal to change that rate of $3.70 per hundred cubic feet of water consumed. Mr. McConnell questioned the rate increase that came about as a result of the lawsuit relating to the sewer treatment plant? Mr. Hanna stated all of the rate increases that have taken place on the City's utility rates are a function of all the costs of running the Utilitv. which would include capital renewals or replacements, #3216 TAPE #1422 City Council Reg. Mtg. Minutes Novenlber 20, 1996 Page 12 of 13 capital expansion, all O&M costs. Clearly, the litigation and lawsuits are expenses of running that utility. Mr. McConnell asked if it was based on the volume of water usage or on the amount of the bill? Mr. Hanna stated it is both. M/S/C(Montgomery/Huff-Menees) to approve ordinance on first reading, amending rates and charges for municipal water and wastewater services; and amending Ordinance No. 4548 and No. 4565. Vote on Motion: In Favor: McConnell, Overson, Montgomery. Huff- Menees, Farr, Neville, Law Opposed: Colvin Motion carried. 8B - PUBLIC HEARING: RESOLUTION NO. 2570, REGARDING THE RECOVERY OF FEES FOR THE ABATEMENT OF THE PROPERTY LOCATED AT 2006 11TH STREET, #AB96-265 On September 24, 1996, the Street Department removed debris and garbage from the property located at 2006 llth Street after the owners, Richard and Hwa Cha Petersen, failed to do so as ordered by the Building Official. The cost to the abatement fund was $387.90. This action will recoup these charges. Judy Johnson, Building Department, stated on September 11, 1996, the property was posted for the large accumulation of trash, which was then removed by the City's Street Department on September 24, 1996. TAPE #1423 Public comment - none. #0072 M/S/C(Neville/Colvin) to adopt Resolution No. 2570, ordering the fees incurred for the abatement of garbage and debris at 2006 llth Street be collected as reasonable abatement costs and become a personal judgment against the owners, Richard and Hwa Cha Petersen, which will become a lien against the property if not paid within 30 days. Vote on motion: In Favor: McConnell, Colvin, Montgomery, Huff-Menees, Farr, Neville, Law Abstain: Overson Motion carried. President Law thanked the TV camera crew for their services: James TAPE #1422 City Council Reg. Mtg. Minutes November 20, 1996 Page 13 of 13 Noble, Mike Peeble, Patricia Mathis, Nadine Price. With no further business meeting adjourned at 7:30 P.M.. KAT ,' City Clerk City of Bremerton KLM/JL/me cc: Normal Distribution File/Vault